Our AC system spews kind of an oily acrid smell every time it turns on which sticks everywhere including in the skin. Technician told us it may be a leak in the coil but that freon is odor free, but we wonder whether freon circulating through the compressor can acquire the smell described above. My wife had to leave the house because of sore throat even after we opened all windows and doors.

No refrigeration expert here but the symptoms you describe indicate a freon leak with an accompanying loss of compressor oil. That would lead to an overheating of the compressor and burning of the oil which gives you the acid odor.

In other words it sounds like a leak in the evaporator coil and a loss of refrigerant and oil has caused over heating of the compressor. Sorry but probably means new compressor as well as leak repair and recharging of refrigerant.

Thanks for the tip. Compressor looks to still be working OK as we have no problem setting the house temperature level around 15 degrees cooler than outside.

The oily substance will certainly be refrigerant oil. The acid odor indicated burned oil. If compressor is still running I would turn off and call refrigeration tech. Continued use will certainly damage compressor if it hasn't already.

Expect to have to have system flushed to remove contaminates even if compressor is still good.